Thursday’s Biggest Analyst Calls: NVIDIA, Gap, Exxon, Apple, Block, Toast, Allstate, Amc, Chipotle, Dollar Tree & More

Thursday's Key Wall Street Calls:

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Wolfe Research Reinstates Exxon as OutperformWolfe Research has resumed coverage of ExxonMobil, rating the stock as outperform and setting a price target (PT) of $146. The firm believes there is significant growth potential for ExxonMobil, noting the company's strategy from 2018 to 2027 aims to double its cash flow, with much of this growth still ahead.

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Mizuho Reaffirms Amazon as Top PickMizuho reiterated its strong support for Amazon, maintaining it as a top pick ahead of its earnings report later this month. The firm noted that Amazon's ad tracking is slightly exceeding expectations, which suggests robust performance in its commerce segment.

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Bank of America Reiterates Nvidia as BuyBank of America continues to endorse Nvidia with a buy rating. The firm advised investors to concentrate on the company's fundamentals, acknowledging a market rotation away from AI/data-center semiconductors towards industrial, automotive, and consumer sectors. However, this shift is considered temporary and not reflective of Nvidia's core strengths.

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Goldman Sachs Reiterates Apple as BuyGoldman Sachs expressed optimism about Apple's upcoming earnings on August 1, predicting an earnings per share (EPS) beat. The key discussion points include iPhone demand, AI investments, updates to Mac and iPad, and overall valuation.

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UBS Initiates Frontier as BuyUBS has initiated coverage of Frontier with a buy rating and a $33 PT, recognizing the cable company as an emerging and growing fiber provider.

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Baird Upgrades e.l.f. Beauty to OutperformBaird upgraded e.l.f. Beauty from neutral to outperform, citing an attractive entry point due to strong brand momentum, expanding distribution, and significant international growth opportunities. The firm believes e.l.f. Beauty is well-positioned to continue gaining market share and achieving premium earnings growth despite a challenging consumer environment.

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Morgan Stanley Upgrades Gap to OverweightMorgan Stanley upgraded Gap from equal weight to overweight, highlighting the stock's compelling value and potential for positive EPS revisions in the second half of the year and beyond. The firm set a price target of $29.

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Mizuho Upgrades Toast to BuyMizuho upgraded Toast from neutral to buy, noting the restaurant tech company's improved profitability and prospects for gross profit growth due to potential reductions in processing costs.

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Citi Upgrades VF Corp to BuyCiti upgraded VF Corp, the owner of brands like Vans and North Face, from neutral to buy. The firm finds the risk/reward profile of the stock compelling.

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Wells Fargo Initiates Grocery Outlet Holding as OverweightWells Fargo began coverage of Grocery Outlet Holding with an overweight rating, describing it as a "defensive growth story." The firm sees an attractive entry point due to choppy execution and poor sentiment.

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BMO Upgrades Allstate to OutperformBMO upgraded Allstate from market perform to outperform, citing better alignment of growth risk/reward factors for the insurance company.

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TD Cowen Upgrades Fortinet to BuyTD Cowen upgraded Fortinet to buy, forecasting several positive catalysts for the cybersecurity firm.

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Deutsche Bank Reiterates Alphabet and Meta as BuyDeutsche Bank raised its price target for Meta to $525 from $500 and for Alphabet to $195 from $190. The firm noted strong sentiment in the digital ad industry, with expected tailwinds from the political cycle and the Paris Summer Olympics. AI-based advertising tools are seen as a key growth driver.

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Benchmark Initiates Winnebago as BuyBenchmark initiated coverage of Winnebago with a buy rating, recognizing the RV manufacturer as an industry outperformer with modest leverage and ample liquidity.

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Redburn Atlantic Equities Initiates TKO as BuyRedburn Atlantic Equities started coverage of TKO with a buy rating. The firm highlighted the rising value of sports rights and the mainstreaming of combat entertainment, which they believe gives TKO leverage in upcoming rights negotiations and potential upside to current valuations.

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William Blair Upgrades Block to OutperformWilliam Blair upgraded Block from market perform to outperform, anticipating significant positive re-rating for the payment tech company due to accelerating growth in gross payment volume, gross profit, and EBITDA in the second half of 2024.

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Redburn Atlantic Equities Downgrades CrowdStrike and Palo Alto NetworksRedburn downgraded CrowdStrike to sell from buy and Palo Alto Networks to neutral from buy, citing elevated valuation multiples and potential market over-optimism. The firm observed slowing dollar growth, declining insurance premiums, and peak penetration as early indicators of these concerns.

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Roth MKM Reiterates AMC as SellRoth MKM maintained its sell rating on AMC, despite raising second-quarter estimates following a late period box office rally. The firm expects sequential improvement in the third quarter and a return to year-over-year growth in the fourth quarter.

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Morgan Stanley Reiterates Taiwan Semiconductor as OverweightMorgan Stanley reaffirmed its overweight rating on Taiwan Semiconductor following its earnings report. The company revised its 2024 full-year revenue expectations to be slightly above 25% year-over-year in USD, surpassing previous expectations.

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JPMorgan Reiterates Dollar Tree as OverweightJPMorgan maintained its overweight rating on Dollar Tree, considering the stock undervalued following a meeting with company management. The firm expects Dollar Tree to return to double-digit EPS growth over the long term, driven by top- and bottom-line improvements at its core Dollar Tree banner and stabilization at Family Dollar.

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UBS Reiterates Chipotle as BuyUBS reiterated its buy rating on Chipotle ahead of its earnings next week, viewing the company as well-positioned for traffic momentum and sales outperformance through 2024, despite consumer spending pressures.

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Cantor Fitzgerald Initiates Impinj as OverweightCantor Fitzgerald initiated coverage of Impinj with an overweight rating and a $205 price target, citing the company's strong position in the radio frequency solutions market.

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